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Posts Tagged ‘fca consent order’

FCA Safety Chief Takes New Job; Maker Gets Federal Monitor

Kunselman named COO of Oakland University.

by on Oct.28, 2015

Scott Kunselman was FCA's top safety executive, but he's resigned to take a job outside of the auto industry.

Fiat Chrysler’s efforts to improve its safety record seem to take a step back for each step forward the automaker takes. Just as it came to an agreement with federal regulators on the choice for an independent monitor to oversee its moves, the company’s top safety offer resigns to take a job outside of the industry.

FCA US LLC agreed to let former U.S. Secretary of Transportation Rodney Slater to serve as an independent monitor of its handling of recalls and other safety-related matters as part of the Consent Order the company agreed to with the National Highway Traffic Safety Administration.

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Slater’s appointment comes as Fiat Chrysler’s top safety officer, Scott Kunselman, senior vice president of safety and regulation, announced he will retire effective Nov. 30, to become chief operating officer at Oakland University in Rochester, Michigan. (more…)

Fiat Chrysler Latest to Beat Expectations With Q2 Earnings

Net income up despite hefty consent agreement charge.

by on Jul.30, 2015

FCA is in "execution mode," says Marchionne.

Fiat Chrysler Automobiles may have begun the third quarter on a sour note, slammed with a record fine for safety lapses, but it ended the second-quarter in fine tune, handily exceeding Wall Street earnings forecasts.

The company, officially registered in the Netherlands, earned a profit of 333 million Euros, or $364 million, even after a chargeback of $88.5 million as a result of the consent order formally announced last weekend. A year ago, FCA earned 197 million Euros, or $215 million, for the period. On a per-share basis, the maker reported earnings of $0.21 between April-June 2015, analysts surveyed by MarketWatch predicting the figure would come in around 19 cents.

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As has been the case for several years, the recovering Chrysler side of the business helped prop up the balance sheet, primarily due to strong demand – and rising prices – in North America. But FCA also saw improvements in a European market just rebounding after a long and deep recession.

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Is Your Car Up for a Buyback?

Sorting through Fiat Chrysler’s massive safety settlement.

by on Jul.30, 2015

The buyback covers a wide range of Ram pickups, including this heavy-duty 4500 model.

As part of a settlement with NHTSA over mishandled recalls, Fiat Chrysler Automobiles has agreed to not only pay a record fine but also to buy back a select group of recent truck models with suspension problems while offering discounts to owners who might want to trade in older Jeeps facing recall.

The complex consent order has created plenty of confusion, dealers and factory phone lines – not to mention news outlets – inundated with calls and e-mails from owners wondering if they qualify for one of the deals.

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Here’s some help in figuring out if you qualify for one of these programs, and what to do even if you don’t.

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Chrysler Will Buy Back – Then Resell — Vehicles Under Consent Order

Agreement actually could drive increased FCA sales.

by on Jul.27, 2015

About 193,000 of the Dodge, Chrysler and Ram trucks may be eligible for buyback.

As part of the consent order Fiat Chrysler Automobiles has reached with the National Highway Traffic Safety Administration, the maker will pay a record $105 million in fines and penalties – while also taking hundreds of thousands of recalled vehicles off the road.

In some cases, however, that may only be temporary. TheDetroitBureau.com has learned that the trans-Atlantic automaker intends to repair some of those vehicles and then resell them to the public. That could affect as many as 193,000 pickup trucks and SUVs, according to documents FCA has filed with NHTSA.

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“If we repurchase them we will resell them after performing the necessary service,” spokesman Eric Mayne told TheDetroitBureau.com, noting that was a step approved by federal regulators as part of the extensive consent order.

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Fiat Chrysler Hit with Record $105 Mil Fine Over Mishandled Recalls

Maker also will offer buybacks and trade-in discounts.

by on Jul.27, 2015

A fire involving a Jeep Grand Cherokee. The consent order calls for FCA to speed up the recall of over 1.5 million Jeeps.

Fiat Chrysler Automobiles has agreed to pay a record $105 million in fines due to a series of mishandled recalls, the National Highway Traffic Safety Administration announced Sunday evening. The largest fine ever levied again an automaker, the consent order will also see FCA buy back more 500,000 vehicles due to suspension defects.

The settlement follows what has been described as an “unprecedented” hearing by federal regulators examining allegations that FCA failed to follow federal safety guidelines in 23 separate recalls. In an appearance in Detroit last Monday, NHTSA chief Mark Rosekind warned that the agency may yet examine how FCA handled other safety problems.

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“Today’s action holds Fiat Chrysler accountable for its past failures, pushes them to get unsafe vehicles repaired or off the roads and takes concrete steps to keep Americans safer going forward,” Transportation Secretary Anthony Foxx said in a statement.

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